This letter will acknowledge receipt of a grant award in the amount of $10,000 for the period July 1, 1977 through June 30, 1978 for the support of the above-referenced research project. In our telephone conversation on June 21, 1977 we discussed paragraph four of your May 23, 1977 letter to Dr. Arthur Parmelee, which reads: "Grants are made with the understanding that letters patent will not be applied for in connection with any discovery made under grants awarded by the Foundation without prior written consent of the Foundation."

In our conversation, I conveyed to you the University's concerns regarding awards from non-profit sponsors who may claim title to discoveries made under grants awarded by such sponsors. It is my understanding based upon our discussion, that the Easter Seal Research Foundation will not claim patent title to any discoveries made under the subject grant, and that the University of California patent policies shall apply to any patentable process or discovery made under the above-referenced research project. You have indicated the Foundation's desire to be notified of any patentable discovery and a concern that such discoveries be made available to crippled children and adults.

The University has a long-standing policy regarding discrimination of research results, and a successful patent program which has been in existence for over 30 years. Our patent program has an outstanding record among educational institutions for transferring technology to the private sector. I believe the Foundation's concern regarding the availability of discoveries to the private sector can be assured by the University's patent program. In addition, it is certainly acceptable to the University that the Foundation be made aware of any discovery or invention prior to application for patent.

Based upon the understanding that the University of California will be permitted to retain any patent title to discoveries developed in the course of the referenced research project, it is with pleasure and appreciation that I accept this award on behalf of The Regents of the University of California.

Any questions concerning the administration of this award should be brought to the attention of the undersigned.